German airline Deutsche Lufthansa said a project to bring together its Germanwings unit and point-to-point services in Europe was one option being considered under plans to cope better with low-cost competition.

“It is just a business case at the moment,” a spokesman for Germany’s largest airline said Lufthansa was planning a new low-cost airline called Direct 4 You.

While Lufthansa is strong in intercontinental and hub traffic, it has suffered in Europe from the rise of low-cost carriers such as easyJet and Ryanair.